Most Popular Lending Content
Determining Flood Insurance For Condo Units -- John M. Floyd & Associates
01/05/2004
We are having some difficulty determining flood insurance coverage for condo units. For example, loan is $500,000, condo association indicates coverage for $666,000 for the 4 units in the condo building. We obtain an appraisal that reflects a value of $175,000. Obviously, the land where the condo has significant value since it is a beachfront property. The insurance company will not issue additional insurance as they indicate there is enough coverage based on the replacement value, which the insurance company indicates is $159,000. We're inclined to require the customer to get the additional coverage to have at least the value of the unit. Are we determining this correctly?
Papering Renewals and Extensions
01/05/2004
What type of disclosure documents are necessary when you are doing a 3 year renewal of a first mortgage, and also for a 6 month extension of a first mortgage?
Funding Loan After Borrower Rescinds
01/05/2004
What happens if you fund the loan weeks after the borrower rescinded?
Second loan based on appraisal of first loan
01/05/2004
A borrower is closing a loan for the purchase of property, The appraised value of the property is $45,000 more than the sales price. After the closing, the borrower wants a second loan for cash using the appraised value. Is that acceptable, and if not, why?
Counteroffers and Denials on Dealer Apps
01/05/2004
Counteroffers and the need for a denial, as concerns dealer applications, have us in a quandary and we're getting differing opinions from regulators. The question is: if we counteroffer (through the dealer) and then another financial instituion ultimately makes the loan, do we need to send the counteroffer/denial to that applicant? Section 202.9(g) states: When an application is made on behalf of an applicant to more than one creditor and the applicant expressly accepts or uses credit by one of the creditors, notification of action taken by any of the others is not required. That begs another question - what if you deny and other bank approves?